The U.S. drinks maker bought the stake from unlisted TGI Group, the two companies said in a joint statement, but did not disclose the value of the sale.

Coca-Cola “intends to increase ownership within three years, subject to regulatory approvals while working on other long-term commercial structures”, the statement said.

It already has a significant presence in Nigeria selling its fizzy drinks.

One industry source said Coca-Cola was paying a “triple-digit-million-dollar” amount for the stake. Sources told Reuters last year Chi was valued at as much as $1 billion.

Lagos-based Chi Ltd, whose owners had been considering a sale for some time, produces mostly fruit drinks, iced teas, snacks and dairy products. TGI is owned by a European family, according to industry sources.

“The parties have agreed to jointly discuss and explore other opportunities in the region to further develop this relationship,” the statement said, without elaborating.